Tanzania Inflation Rate Down to 9.8% in March

In Tanzania, the year-on-year inflation rate slowed to 9.8 percent from 10.4 percent recorded in the previous month. Inflation rate fell into the single digit for the first time since May of 2011, mainly due to a slowdown in the rise of food prices.

On the year-on-year basis, the headline inflation rate for the month of March of 2013 eased to 9.8 percent from 10.4 percent recorded in February of 2013. The rate of price increase for commodities in March of 2013 has fallen, when compared to the speed recorded in February of 2013. Prices of food consumed at home and away from home has declined to 10.7 percent in March of 2013 from 11.7 percent in February of 2013. In addition, food and non alcoholic beverages prices slightly decreased to 11.1 percent in March of 2013 from 12.0 percent recorded in February of 2013. However, the 12 month index change for non food products has slightly increased to 8.5 percent in March from 8.4 percent recorded in February.

On the month-over-month basis, the headline inflation rate in March rose 0.5 percent when compared with 1.4 percent recorded last month. This increase is attributed to the price increase of non food items. Non food items that contributed to the increase in monthly inflation rate include clothing materials by 1.1 percent, water supply by 2.7 percent, charcoal by 12.6 percent, furniture by 0.6 percent, household textile by 0.6 percent, household electric appliances by 0.8 percent, medical services by 2.7 percent, Diesel by 0.4 percent and Petrol by 2.0 percent.

The Annual Inflation Rate which excludes food and energy for the month of March of 2013 has decreased to 5.9 percent from 6.7 percent recorded in February of 2013. Annual Inflation Rate for Energy has increased to 22.6 percent in March compared to 18.3 percent recorded in in the previous month.

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